Billet
Billet market was stable during week 32 in Iran despite quiet and
depressed sentiment. Downward trend in billet market will occur when DRI price
drops, otherwise production will decline.
In domestic market, billet size 125 mm was also unchanged at
Rials12-12.4 million/mt ex-works including 9% VAT. Size 150 mm was also
Rials12.8-13.1 million/mt ex-works including 9% VAT.
Long products
Long products were downward during last week in Iran domestic
market. Average price of debar diameter 14-25 mm was down by Rials 50,000/mt to
Rials14.95million/mt ex-work Esfahan including 9% VAT. I-beam size 14,16, 18 mm
were up by just Rials10,000/mt to Rials15.21 million/mt ex-works including VAT.
In debar market prices were down by up to Rials500,000/mt in some
cases. Market is quiet and producers will continue following downward trend.
Some cash sales were heard at Rials14.3 million/mt ex-works including
9% VAT. At this price, producers would have no margin or as much as
Rials200,000/mt profit rate. It’s summer time and seasonal weakness is
inevitable for at least another month.
Angle and channel were also downward during last week in Iran but
at a slower pace.
Flat Products
2 mm thickness HRC experienced Rials100,000/mt decline
during last week to reach Rials17.6 million/mt on truck in Anzali including VAT
and custom duty. In Imam Khomeini port Chinese HRC is not available but Korean
cargo is available at limited tonnage at Rials17.8-18 million/mt on truck
including VAT and custom duty. High offer prices have made Chinese material
import level very limited. CIS origin HRC import level has also declined.
Market is sad and quiet and importers prefer staying back. It was heard that
significant amount of 2 months ago orders will arrive Northern Custom Office in
coming days, with a main part of it would be HRC 2 mm thickness. For thickness
2.5-15 mm market was stable. Despite limited supply, prices stayed unchanged
due to lack of demand. Thickness higher than 15 mm had a stable market. Just
for sizes 20 and 25 mm supply level was scarce.
CRC market is still facing with limited supply level
but its price has not changed. When new cargoes arrives domestic market, prices
may change.
HDG price was upward due to summer Holiday of domestic
leader Kashan Steel Co and limited supply. Its notable that upward trend was
obvious in sizes 0.50 and 0.60 mm.
-------------------------
Ex-rate:
Official rate: Rials31,064
/1USD
In open market: Rials 35,420/1USD
13 Aug 2016